The morning news. [volume] (Savannah, Ga.) 1887-1900, 1887-05-19
GOULD AND THE DENVER.
WHY THE KANSAS PACIFIC ROAD
REDEEMED THE BONDS.

A Voluntary and Unnecessary Addi-
ton to the Sinking Fund Would
Have Resulted Had the Trustees
Taken Them The Wizard Charges
Oliver Ames and President Pomeroy
With Fooliug Him.
New YORK, May 1S.-The examination
of Jay Gould was continued before the Pa
citic Railway Commission to-day. Conn
missioner Anderson desired to know why il
was more to the advantage of the consoli
dated company to have the Kansas Pacific
redeem the Denver Pacific bonds instead OF
the trustees of the consolidated mortgage.
Mr. Gould said the consolidated company
would make new bond and throw it into
an outside trust, and the scheme which was
agreed upon was the only one that could
have been made for the benefit of the cor.-
pany.
NOT 80 GOOD.
'The giving of consolidated stock to the
trustees would not have been so good an ar
rangement 1t would have been voliln-
tary and unnecessary addition to the sink
ing fund and would have been a pledge for
the payment of bonds. By the release of
the Denver Pacific stock from trust the
consolidated company was able to use it in
the requirement of the Kansas Pacific
branches. II was used for that purpose and
those branches were bought of me accord
ing to prior agreement. i had been COM
mitted to the consolidation before the inter-
view with the Boston people and after my
acquisition of the Missouri Pacific felt as
though it would be great detriment TO my
interests. An extension of the Missouri
Pacific TO Denver and San Francisco, as I
contemplated, would have destroyed tho
Union Pacific.
NOT PROPER THING.
''I do not think it would have been pro-
per thing for director of one corporation
to design the extension of another line
which would ruin the one of which he was
a director. had thought of the rights OF
the government often, but after the passage
of the Thurman bill, | thought the govern
ment was trying TO squeeze more out Of
the ssturnip than there was in it, and my
plan then was to build road from Omaha
to Ogden, just outside the right of way for
Sl5000,000. prepared my resignation as
a director of the Kansas Pacific, at the
same time with that Of the Union Pacific.
wanted to be free from complications tQ
complete dealings"
THE WIZARD FOOLED.
In purchasing the central branch of flaa
Oihbh MI. ADNlu bul1 OL bL6 WHY
he was fooled by Oliver Ames and Presid1n<
Pomeroy of the road. He was building tl1G
Junction City and Fort Kearney roo0
parallel 60 the central branch, and Messra
Ames and Pomeroy came to New York "a
see him and sell him the road. They took
Mr.. Gould back with them to show him
over the road, and he said he was very much
pleased with the amount of business done
by the road. He bought the road but
found afterward that the central branch
people had held back freight for about ten
days before his visit and then rushed IL
all over the road at once. The wit
ness said he sold his stock for
just what he put it in the
consolidation for, and IL there was profit
of 81, 800, 900 realized by the pool the lawyers
must have got it. He turned his Denver
and South Park and Utah Northern stock
into the Union Pacific at cost price, He
knew of no occasion wheE securities Of the
Union Pacific were used to influence legisla<
tion at Washington. The examination WI
be continued ta-morTow.